The ANZ Bank has forecast that Vietnam will post an annual GDP growth of 6.9% in 2016 and 6.5% in 2017 despite a decline in agricultural output.
According to the bank’s latest report on ‘Greater Mekong outlook’, Vietnam’s GDP growth reached 5.6% in the first quarter of 2016, lower than ANZ’s estimate of 6.2%.
Agricultural output fell 1.2% over the same period last year as it was affected by the cold weather in the north region with the El Niño phenomenon in the Mekong Delta region.
In the mean time, the industrial sector saw a three-year high increase of 6.2%, lower than the previously anticipated 9% for the same period last year. Although construction and services have achieved faster growth than in the first quarter of last year, it was not enough to offset the weakness in agriculture.
The bank also forecasts that Vietnam’s exports will develop well in 2016 thanks to sound investments in the manufacturing sector in 2015.
Vietnam’s inflation is expected to fall to 1.7% this year, and will remain at 2.5% in 2017, said the report.
Foreign investment also saw positive signs, with US$2.74 billion registered in the first three months of this year, higher than the figure of US$ 1.217 billion recorded in the same period last year.
Source: Nhan Dan